• Second quarter 2025 earnings per share of $1.67, up 17% year-over-year
• Inland marine experienced steady market conditions with a sequential increase in spot market prices and operating margins in the low 20% range
• Strong market conditions in coastal marine with operating margins improving to high teens range
• Power Generation revenue increased 35% sequentially and 31% year-over-year
• Kirby repurchased 331,900 shares at an average price of $94.01 for $31.2 million in the second quarter
   

HOUSTON, July 31, 2025 (GLOBE NEWSWIRE) -- Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net earnings attributable to Kirby for the second quarter ended June 30, 2025, of $94.3 million or $1.67 per share, compared with earnings of $83.9 million, or $1.43 per share for the 2024 second quarter. Consolidated revenues for the 2025 second quarter were $855.5 million compared with $824.4 million reported for the 2024 second quarter.    

David Grzebinski, Kirby’s Chief Executive Officer, commented, “Kirby delivered another solid quarter, with strong performance across both marine transportation and distribution and services. Our teams executed well in a dynamic environment, and we continued to benefit from healthy customer demand, disciplined pricing, and operational focus.”

“In inland marine transportation, market conditions remained favorable during the second quarter. From a demand standpoint, customer activity was steady, with barge utilization rates running in the low to mid-90% range throughout the quarter. While we experienced some navigational and lock delays that challenged operational efficiency, our teams executed well. Pricing continued to show improvement during the quarter with sequential and year-over-year increases in spot market prices and term contract renewals that were up in the low to mid-single digits year-over-year. The combination of improved pricing and disciplined execution helped drive operating margins to the low 20% range.”

“In coastal, market fundamentals remained strong with barge utilization levels running in the mid to high-90% range. Customer demand remained consistent throughout the quarter, and a limited availability of large capacity vessels continued to support pricing gains. Term contract renewals increased in the mid-20% range compared to a year ago, reflecting ongoing strength in the market. The combined impact of fewer planned shipyards and strong pricing worked to push coastal operating margins to the high teens.”

“In distribution and services, our teams performed well and delivered year-over-year growth in both revenue and operating income, with solid contributions across most of our end markets. In power generation, revenues increased 31% year-over-year as demand from data centers and industrial customers remained robust. The pace of inbound orders continued to build our backlog, and we secured additional project wins for backup and critical power applications. In the commercial and industrial market, revenues increased 5% year-over-year, supported by steady marine repair activity and a modest improvement in on-highway service. In oil and gas, while revenues declined year-over-year due to softness in conventional activity, we achieved a 182% increase in operating income driven by strong execution, disciplined cost management, and continued growth in e-frac equipment. Overall, the segment performed well and demonstrated our ability to adapt and deliver results in a mixed demand environment.”

Segment Results – Marine Transportation
Marine transportation revenues for the 2025 second quarter were $492.6 million compared with $484.8 million for the 2024 second quarter. Operating income for the 2025 second quarter was $99.1 million compared with $94.9 million for the 2024 second quarter. Segment operating margin for the 2025 second quarter was 20.1% compared with 19.6% for the 2024 second quarter.

In the inland market, 2025 second quarter average barge utilization was in the low to mid-90% range and similar to the 2024 second quarter. During the quarter, average spot market rates increased in the low-single digits sequentially and in the mid-single digit range as compared to the 2024 second quarter. Term contracts that renewed in the second quarter increased in the low to mid-single digits on average compared to a year ago. The inland market represented 81% of segment revenues in the second quarter of 2025. Inland’s operating margin was in the low 20% range for the quarter.

In coastal, market conditions were strong during the quarter, with Kirby’s barge utilization in the mid to high-90% range. Term contracts that renewed in the second quarter increased in the mid-20% range on average compared to a year ago. Coastal revenues increased 3% year-over-year as increased pricing was partially offset by elevated levels of planned shipyards. Coastal represented 19% of marine transportation segment revenues during the second quarter and had an operating margin in the high teens.

Segment Results – Distribution and Services
Distribution and services revenues for the 2025 second quarter were $362.9 million compared with $339.6 million for the 2024 second quarter. Operating income for the 2025 second quarter was $35.4 million compared with $29.4 million for the 2024 second quarter. Operating margin was 9.8% for the 2025 second quarter compared with 8.7% for the 2024 second quarter.

In the power generation market, revenues increased 31% compared to the 2024 second quarter driven by robust sales. Orders continued to grow as the need for 24/7 power and back up capabilities remains critical. Overall, power generation revenues represented approximately 39% of segment revenues. Power generation operating margins were in the mid to high-single digits.

In the commercial and industrial market, revenues increased 5% and operating income increased 24% compared to the 2024 second quarter, driven by strong activity levels in marine repair and a modest improvement in on-highway repair business levels. Overall, commercial and industrial revenues represented approximately 48% of segment revenues. Commercial and industrial operating margins were in the low double digits.

In the oil and gas market, revenues declined 27% while operating income increased 182% compared to the 2024 second quarter driven by lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts partially offset by deliveries of e-frac equipment. Overall, oil and gas revenues represented approximately 13% of segment revenues. Oil and gas operating margins were in the low double digits.

Cash Generation
For the 2025 second quarter, EBITDA was $202.2 million compared with $182.9 million for the 2024 second quarter. During the quarter, net cash provided by operating activities was $94.0 million, and capital expenditures were $71.5 million. During the quarter, the Company had net proceeds from asset sales totaling $11.6 million. Kirby also used $31.2 million to repurchase stock at an average price of $94.01. As of June 30, 2025, the Company had $68.4 million of cash and cash equivalents on the balance sheet and $331.5 million of liquidity available. Total debt was $1,117.8 million and the debt-to-capitalization ratio was 24.8%.

2025 Outlook
Commenting on the outlook for the remainder of 2025, Mr. Grzebinski said, “As we move into the second half of the year, we remain focused on execution, while closely monitoring the evolving macroeconomic and geopolitical environment and their potential impact to our volumes. We still expect 15 to 25% year-over-year growth in earnings for all of 2025. However, recent shifts in trade policy have introduced new complexities to near-term planning for us and our customers and have contributed to some softness in areas. These complexities are impacting trade flows and demand including chemicals as well as sourcing for our power generation supply chain. If the current softness persists, we will likely be closer to the lower end of our prior full year EPS growth guidance, with movement closer to the higher end dependent on stronger economic conditions. While the environment has become less certain, we remain confident in our ability to adapt and execute. We are committed to maintaining capital discipline, and we are well-positioned to navigate the challenges ahead. Our balance sheet remains strong, and we are generating solid free cash flow, positioning us well to invest in disciplined capital allocation and long-term value creation opportunities.”

In inland marine, market conditions remain constructive, though we are seeing some signs of price moderation. Barge utilization, while still healthy, has softened slightly to begin the third quarter and is now expected to be in the low 90% range for the third quarter. We expect the pricing improvements in term contracts to continue longer term given the limited pace of newbuilds, but spot market pricing might be under pressure due to short term demand softness. Inflation remains a factor, particularly in labor, and the industry-wide mariner shortage continues to constrain capacity growth. While the environment is more challenged than earlier in the year, operating margins are expected to remain in the 20% range, assuming no major disruptions from tariffs or broader economic conditions.

In coastal marine, market fundamentals remain strong. Contract renewals remain robust, and we are seeing improved operating leverage as shipyard activity winds down. We expect coastal barge utilization to remain in the mid-90% range. Limited vessel availability across the industry and strong customer demand are driving continued pricing momentum. While inflationary pressures and labor constraints persist, the coastal business is expected to have operating margins in the mid to high teens range with modest improvement in the back half of the year.

In distribution and services, the outlook is mixed. Power generation continues to be an area of strength, with strong demand from data centers and industrial customers driving order growth. However, extended OEM lead times and delivery schedules remain a challenge. In commercial and industrial, marine repair activity is steady, and the on-highway market has shown modest improvement. Oil and gas growth remains constrained due to current market conditions and customer capital discipline, but we continue to show strength in e-frac and disciplined cost management. For the segment, we now expect full-year revenues to be flat to slightly up, with operating margins in the high-single digits.

Kirby expects to generate net cash provided from operating activities of $620 million to $720 million in 2025 and capital spending is expected to range between $260 million to $290 million. Approximately $180 million to $210 million is associated with marine maintenance capital and improvements to existing inland and coastal marine equipment, and facility improvements. Up to approximately $80 million is associated with growth capital spending in both our businesses.

Conference Call
A conference call is scheduled for 7:30 a.m. Central Daylight Time today, Thursday, July 31, 2025, to discuss the 2025 second quarter performance as well as the outlook for 2025. To listen to the webcast, please visit the Investor Relations section of Kirby’s website at www.kirbycorp.com. For listeners who wish to participate in the question and answer session via telephone, please pre-register at Kirby Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing them to access the live call. A slide presentation for this conference call will be posted on Kirby’s website approximately 15 minutes before the start of the webcast. A replay of the webcast will be available for a period of one year by visiting the News & Events page in the Investor Relations section of Kirby’s website.

GAAP to Non-GAAP Financial Measures
The financial and other information to be discussed in the conference call is available in this press release and in a Form 8-K filed with the Securities and Exchange Commission. This press release and the Form 8-K includes a non-GAAP financial measure, EBITDA, which Kirby defines as net earnings attributable to Kirby before interest expense, taxes on income, and depreciation and amortization. A reconciliation of EBITDA with GAAP net earnings attributable to Kirby is included in this press release. This press release also includes non-GAAP financial measures which exclude certain one-time items, including earnings before taxes on income (excluding one-time items), net earnings attributable to Kirby (excluding one-time items), and diluted earnings per share (excluding one-time items). A reconciliation of these measures with GAAP is included in this press release. Management believes the exclusion of certain one-time items from these financial measures enables it and investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Kirby’s normal operating results. This press release additionally includes a non-GAAP financial measure, free cash flow, which Kirby defines as net cash provided by operating activities less capital expenditures. A reconciliation of free cash flow with GAAP is included in this press release. Kirby uses free cash flow to assess and forecast cash flow and to provide additional disclosures on the Company’s liquidity. Free cash flow does not imply the amount of residual cash flow available for discretionary expenditures as it excludes mandatory debt service requirements and other non-discretionary expenditures. This press release also includes marine transportation performance measures, consisting of ton miles, revenue per ton mile, towboats operated and delay days. Comparable marine transportation performance measures for the 2024 year and quarters are available in the Investor Relations section of Kirby’s website, www.kirbycorp.com, under Financials.

Forward-Looking Statements
Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby’s annual report on Form 10-K for the year ended December 31, 2024.

About Kirby Corporation
Kirby Corporation, based in Houston, Texas, is the nation’s largest domestic tank barge operator transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. Kirby transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. In addition, Kirby participates in the transportation of dry-bulk commodities in United States coastwise trade. Through the distribution and services segment, Kirby provides after-market services and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications. Kirby also rents equipment including generators, industrial compressors, high capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets. Kirby also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.

Contact: 
Kurt Niemietz
713-435-1077

Source: Kirby Corporation